🧾 What This Document Is

This is an 8-K filing, which is a report of major company events. Attached is the official press release announcing PEDEVCO's financial results for the fourth quarter and full year of 2025. Think of it as the company's "report card" for the year, with a massive asterisk explaining that the results were completely changed by a huge acquisition in October.

🏢 What The Company Does

👉 In simple terms, PEDEVCO is an oil and gas company. They buy and develop energy assets, specifically in the Rocky Mountain region of the U.S. Their main playgrounds are the D-J Basin (Wyoming/Colorado), the Powder River Basin (Wyoming), and the Permian Basin (New Mexico). After their big merger, they now control over 310,000 net acres across these areas.

💰 Financial Highlights: The Big Picture

The story here is two-fold: a GAAP net loss but a surging operational profit (Adjusted EBITDA). The loss is due to one-time costs from the merger.

Full-Year 2025 vs. 2024:

• Revenue: $45.8 million, up 16% from $39.6 million.
• GAAP Net Loss: $(10.4) million, a swing from a $12.3 million profit last year.
• Adjusted EBITDA: $27.0 million, up 18% from $22.9 million. 👉 This is the key metric management highlights. It shows the core business earned more cash before the big one-time merger expenses hit.

Fourth Quarter 2025 vs. Q4 2024 (shows the merger's early impact):

• Revenue: $23.1 million, up 118% from $10.6 million.
• Adjusted EBITDA: $15.4 million, up 203% from $5.1 million. 👉 The last two months of the year, after the merger, supercharged these results.

🚀 The Juniper Merger: The Transformational Event

This is the headline event that explains everything else.

• What: PEDEVCO merged with oil & gas assets controlled by Juniper Capital Advisors, L.P. on October 31, 2025.
• Impact: It doubled the company's size almost overnight. It added massive production, reserves, and acreage in the D-J and Powder River Basins.
• The Financial Hangover: The merger caused a $7.5 million hit from one-time legal, accounting, and integration costs. It also triggered $8.1 million in income tax expense and new $1.4 million in interest expense on debt they didn't have before.

📦 The New Financial Position

The merger reshaped the balance sheet.

• Reserves: Proved reserves jumped 77% to 32.1 million barrels of oil equivalent (MMBoe). Their estimated value (PV-10) is $357.7 million.
• Debt: They now have $87.0 million in debt on a credit facility (they had none before). Their total borrowing capacity is $250 million.
• Cash: They ended the year with $3.2 million in cash.

🔮 What's Next: 2026 Guidance & Strategy

Management is guiding for a big year, showing confidence in the merged company.

• 2026 Profit Forecast: They expect $60 to $70 million in Adjusted EBITDA. 👉 That's more than double their 2025 result.
• Spending Plan: They plan to spend $16 to $20 million on capital projects, mainly optimizing the newly acquired assets.
• Key Goals: Focus on lowering costs, developing their assets efficiently, and hunting for more acquisitions to get even bigger.

⚖️ The Bottom Line: Strengths & Risks

👍 Strengths:

• Massively Scaled-Up Business: The merger created a much larger, more significant player in the Rockies.
• Strong Cash Flow Generation: Despite the GAAP loss, Adjusted EBITDA grew and is projected to soar in 2026.
• Significant Reserve Base: They have over a decade of production in the ground (10+ year reserve-to-production ratio).

⚠️ Risks & Challenges:

• Integration & Execution Risk: Can they successfully merge these assets, lower costs, and hit their ambitious 2026 targets?
• Debt Load: They went from zero debt to $87 million in debt, adding financial risk and interest costs.
• Commodity Prices: Their 2026 guidance assumes oil at $65/barrel and gas at $3.50/Mcf. If prices fall, profits will miss targets.
• GAAP Profitability: They need to move past merger costs to achieve consistent net income.

🧠 The Analogy

PEDEVCO just completed a massive, messy home renovation (the Juniper Merger). The 2025 results are like the deconstruction phase: huge expenses (contractor bills, permits), dust everywhere (GAAP loss), and you can't fully live in the house yet. However, the blueprint is solid, the new foundation is poured (doubled reserves), and the rooms are much bigger (scaled-up production). 2026 is the year they plan to finish the interior, move in, and finally start enjoying the expanded space (projected higher profits).

📇 Key Contacts & People

• Media Contact: PEDEVCO Corp., (713) 221-1768, [email protected]
• Investor Relations Contact: Sean Mansouri, CFA or Laurent Weil, Elevate IR, (720) 330-2829, [email protected]
• CEO Commentary: J. Douglas Schick, President and Chief Executive Officer

🧩 Final Takeaway

PEDEVCO's 2025 was defined by a transformative merger that quadrupled its production scale and reserve value but came with significant one-time costs, leading to a GAAP net loss. The key for investors is to look past that loss to the surging Adjusted EBITDA and the ambitious 2026 guidance, which will test management's ability to successfully integrate its new, much larger asset base.